The Value of Individual and Societal Risks to Life and Health
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habits than nonsmokers. Recent studies discussed in Section 7.8 have used panel data
to control for worker heterogeneity and instrumental variables to address endogeneity
and measurement error (Kniesner et al., 2012).
7.4 THE VISCUSI-HERSCH SEGMENTED LABOR MARKET MODEL
The canonical hedonic labor market theory assumes that all workers face the same labor
market opportunities locus as in Figure 7.1. A straightforward generalization is to allow
for factors that may lead to different vertical intercepts for the wage offer curve. Thus,
more years of education or a favorable local labor ...
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